Kernel Holding Declines as Profit Swings to Loss: Warsaw Mover

May 31 (Bloomberg) -- Kernel Holding SA fell the most in
six weeks after the Ukrainian agriculture company reported a net
loss in the first three months of this year.

The shares declined 4 percent to 57.4 zloty at the close in
Warsaw, the lowest since April 19, after trading down as much as
7.1 percent. The trading volume was 274 percent of the stock’s
three-month daily average, data compiled by Bloomberg show.

Kernel turned to a net loss of $3.4 million in its third
quarter ending on March 31 as most bulk sunflower oil contracts
were signed with delivery for the April to June period, the
Kiev, Ukraine-based company said in a report today. Warsaw-listed Kernel had net income of $37.2 million a year earlier.

“Although the weak third quarter numbers had been
expected,” earnings before interest, tax, depreciation and
amortization as well as the operating profit missed consensus
estimates, Andriy Patiota, a senior analyst at ArtCapital Group,
said in a note today.

The company’s operating margin was “low” because it
dropped 12 percent in the sunflower-oil segment and 2 percent in
the grain segment, Patiota said.

Bulk sunflower oil sales dropped 22.5 percent in the period
to 173,976 metric tons, grain sales fell 21.4 percent to 653,745
tons, which was compensated by higher grain prices, Kernel said.
The company’s earnings before interest, tax, depreciation and
amortization declined in the three months by 30 percent to $43.8
million. Revenue was almost unchanged at $597.9 million.

Kernel sees its Ebitda in the fiscal year ending June 30 at
$310 million, according to the statement. It gave no profit or
revenue forecast.